Downgrades

HG Infra delivered a mixed set of results in Q2FY26 that underline execution progress on its large road/HAM portfolio but also reflect near-term noise from project accounting, higher financing and working-capital needs, on a standalone basis revenue rose to Rs11.5bn in Q2 vs Rs10.6bn a year ago (+8.4% YoY) but declined sharply QoQ from Rs17bn in Q1, driven by phasing of project billings. EBITDA dropped to Rs1.5bn with 12.7% margin versus 16.4% last year and PAT fell to Rs673mn, at 5.8% margin, reflecting higher finance costs and some oneoff provisions taken on specific contracts. We maintain BUY rating on the stock with revised TP at Rs1,126 value at 10x FY26E EPS. Q2 consolidated revenue was...

IRCTC delivered a stable and profitable Q2FY26 with profit after tax rising 11% YoY to INR 341cr and strong EBITDA margin improvement to 34.3%. Growth was broad-based, led by Internet Ticketing (INR 386cr revenue, 85% EBITDA margin), robust Catering (INR 520cr, 13% margin) and buoyant Tourism (INR 150cr, 7% margin). Rail Neer volumes remained steady and capacity expansion is underway. Management highlighted disciplined cost control and margin sustainability driving recurrent improvements. Strategic priorities include building a unified travel portal leveraging AI/ML, expanding payment aggregator...

Voltamp Transformers (VAMP) reported performance as per expectations in Q2FY26. While Revenue and EBITDA grew by 21% and 25% respectively, PAT only grew by 4% owing to lower other income. This was on account of much lower mark to market gains YoY. VAMP clocked in sales volume of 3,709 MVA in Q2FY26 which is a rise of ~3% YoY in MVA terms. Voltamp has been a preferred vendor amongst its clients due to its prudent execution track record and working capital management despite the cyclical nature of the business. However, with several credible competitors adding capacity in the transformers...

IRCON delivered a subdued performance in Q2FY26 on a standalone basis, with revenue from operations at Rs18.5bn, down 19.5% YoY despite an 11% sequential recovery. EBITDA declined to Rs2.4bn from Rs2.9bn in Q2FY25, while margins contracted sharply to 12.9% from 14.9% a year ago, reflecting cost overruns and lower-margin project execution. PAT stood at Rs1.8bn, down 25% YoY though improving 23% sequentially, driven by better execution in railway and highway projects and higher other income. The decline in profitability and margin compression were key disappointments, primarily due to losses in...

KNR Constructions reported a disappointing Q2FY26, with consolidated revenue plunging 66.8% YoY to Rs6.5bn, impacted by sluggish execution and delayed project ramp-ups, though modestly up 5.5% QoQ. EBITDA dropped 78% YoY to Rs1.9bn with of margin 29.8%, while PAT fell 82% YoY to Rs1.0bn as monsoon disruptions, high employee cost, and legacy project tapering hurt performance. The standalone business saw sharper margin compression (10.9% vs 18.6% YoY) and weak cash generation amid elevated receivables and working capital of 144 days. Order book stood at Rs87.4bn, with two HAM projects achieving...

Sonata Software demonstrated a resilience performance with reported consolidated revenue at INR 2,119cr, reflecting a 2.3% YoY decline but stable order book growth with a book-to-bill ratio of 1.28x. International services revenue grew 3.2% YoY to USD 82mn, driven by strong demand in Healthcare, BFSI, and TMT verticals. EBITDA margin expanded by 70 bps QoQ to 17.3%, supported by higher utilization (87.3%), planned large-deal offshoring, and AI-led productivity improvements, partially offsetting salary inflation impact. Sonata secured one large multi-year healthcare deal and several mid-sized...

We maintain our HOLD rating on the stock

We maintain our HOLD recommendation on the stock.

Healthy order-book & robust pipeline gives strong visibility; Increasing share of higher-margin domestic contracts to drive profitability: Consolidated order backlog of 2209 crore as of Sep-25 (2x TTM revenue) provides healthy revenue visibility. Order inflows remained strong at 320 crore during H1FY26 and management is optimistic about order inflows worth ~ 1000 crore for the remaining quarters. With a strong emphasis on improving product mix and getting orders with higher complexity, company guides revenue at ~ 1150-1200 crore in FY26E (which implies...

Q2FY26 Performance: International IT services (IITS) revenue came at US$ 82 mn, up 1% QoQ/ down 2.9% YoY in CC terms. IITS EBITDA margin at 17.3%, up ~70 bps QoQ. Consol revenue came at US$ 242.8 mn, down 30% QoQ while in rupee terms it stood at 2,119.3 crores, a decline of 28.5% QoQ and 2.3% YoY with EBITDA...